But before we go into the history of blue chip stocks, let me reveal the top 10 blue chip stocks in India. With that in mind, we pen down a list of 5 bluechip stocks hitting their 52-week lows. The weak market sentiments, driven by a variety of factors, have sent the stock markets on a roller coaster ride.
- It has a 32.2% share of national refining capacity which is 80.6 MMTPA.
- With subsidiaries across 7 countries, IOC boasts of a strong geographical presence.
- If you have tried a game of poker, you would know that the blue chips represent the highest dollar value in the game as compared to the white and red poker chips.
- Due to the company’s leadership position, it enjoys a healthy operating margin of over16.51% which is higher than peers.
His is going to be a long post, but I promise that it will be worth reading. Therefore, without wasting any further time, let us understand the blue chip companies in India. The modus operandi observed is that once a client pays amount to them, huge profits are shown in his account online inducing more investment. However, they stop responding when client demands return of amount invested and profit earned. Blue Chip companies are stalwarts in their own industry and belong to the mature lot on exchanges. The term ‘Blue Chip’ originates from the round of poker where the blue colored chips are relatively more valuable.
Are blue chip stocks value stocks?
They have one thing in common – they are supreme companies that can fight internal and external financial hurdles, make profits year after year, and are running sustainable businesses for years. These are well-capitalized, well-established, and have shown traits of growth and profitability for years, earning the trust of many. Blue chip companies meaning is having such traits and a firm standing in their respective market and industry. Hence, you can clearly come to a conclusion that if a stock has stable earnings, it is backed up by a strong management team which is doing something right, to take the company’s growth on a stable note. You can earn rich dividends on your investment portfolio and that is the first and the foremost expectation of all investments. In case of Nepal, there are several blue cheap stocks which have provided generous returns to the investors over long period of time.
How to buy blue chip stocks?
You can buy blue-chip stocks either individually through your Demat and Trading account or you can invest in various mutual funds (MFs) and thematic exchange-traded funds (ETFs) that track the blue-chip stocks that you are interested in buying.
Amid all the risk possessed by the stock market, an Indian investor’s initial instinct will be to invest in blue chip companies of India. Housing Development Finance Corporation Ltd. is the market leader in the housing finance industry in India with a strong distribution network comprising 675 outlets. Recently, an announcement was made to merge HDFC Ltd, with HDFC Bank.
What is the Market cap of Bluechip Stocks ?
Blue Chip companies are sought after ones on the stock market due to all the factors that we have detailed out in this article. However, like every other investment, the stocks of these companies must also be tracked as there have been cases where these sought after companies have failed due to poor management or mismanagement. Including them as part of your core holdings within your larger diversified portfolio is advisable. However, a prudent investor would irrespective of the stocks he holds – be it small caps or blue chips will always keep a tab on the latest news, price movements, and chart patterns. Hampered economic scenario and uncertainty which lies ahead of investors, prevalent risk-aversion among market participants have all brought back the interest of many market participants to Blue Chip stocks. Given that these quality companies are more resilient to economic downturns, they may continue to grow or operate profitably even during adverse market conditions.
Which are blue chip companies?
Based on market capitalization, India's leading blue chip companies are the state bank of India, Bharti Airtel, Tata consultancy services, Reliance Industries, Coal India, HDFC, ITC, Infosys, ICICI Bank, ONGC, GAIL, and Sun pharma.
Some people are not agree with this though they say, actually blue chip came from a very famous game Poker, where most valuable chips are referred with name blue chips, and their color is also blue. Later this name blue chip stock gets famous all over the world. He mostly refers those stocks with the name Blue Chip Stocks which price cross the level of $200. ● Income of the Company through financial statements – Their balance sheets and profit and loss statements can be accessed from their official websites and should be thoroughly looked at.
Blue Chip India Ltd
A number of services are provided by HDFC Bank, which include Wholesale banking, Retail banking, Treasury, Auto Loans, Two Wheeler Loans, Personal Loans etc. Reliance is India’s first Indian retailer to cross US $10 billion revenue. With their past performance https://1investing.in/ they have created lots of wealth for their investor. Generally they are market leader in their sector, and they sustained from very long time in the market. Individuals can invest in Blue-chip stocks in India either directly or through Mutual Funds.
With its large scale of operations, Infosys has been able to maintain lower operating costs than its immediate industry rivals that in turn has allowed the company to offer more competitive pricing to its customers. Across the last decade, the company has averaged a dividend yield of 2.4% and recorded an ROE of 30.4%. The company has delivered a good profit of Rs 221.5 bn, a YoY increase of 14%. The company has no debt and continues to maintain a strong liquidity position. TCS has comfortably outperformed its biggest industry peers globally recording a PAT of Rs 384.5 bn, an increase of Rs 58.9 YoY.
However, being new to investing, most of them are simply confused and are not able to understand what other means when they say blue chip companies. Investing in Blue Chip stocks is recommended for investors with a conservative risk profile to meet their long term goals of at least 5-7 years. But investing in these companies is ideal for all investors to grow their wealth over a long period without exposing themselves to a lot of risk and volatility. Some portion of an investor’s portfolio can always be exposed to blue chip stocks for stable less risky returns.
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Once a company has sold a billion products, it’s difficult to find the next billion customers.”, Gaurav challenged me with his witty reply. The operating profitability of the company has seen improvement over the years with operating profit currently standing at 8.07%. The company has a decent debt on the books of Rs. 647 crores and with a cash of Rs. 299 crores. Risks would include significant weakening of operating margin due to large gestation losses from new stores, larger than expected debt-funded capex increasing the now comfortable debt to equity ratio.
On the other hand, equity is the amount of the owners’ funds that is deployed in the company, and the company is not required to pay its equity (share-) holders . A company is generally considered Blue Chip if its D/E is equal to or less than 1. Oliver Gingold first coined the term Blue Chip stock in the 1920s.
Over the last decade, revenue growth of 292.2% was recorded by the company. The company evolved from a textile and polyester business to one of the most diversified conglomerates that includes petrochemicals, energy, retail, natural gas, media, and telecom. Moreover, these are comparatively more expensive than other stocks because of all the investor rush. The high liquidity of a stock depicts the ease in carrying out trade.
The second advantage to add blue chip stocks in your portfolio is , it balanced your portfolio in a volatile market condition. So You must add blue chip stocks with strong fundamentals and future growth to achieve a diversified portfolio. So it is always suggested for those person always invest in blue chip stocks, these stock have very low risk GRAT Planning Strategies comparatively small cap and mid cap. For senior citizens who want to invest in stock market with a limited risk for their portfolio blue chip stocks are good bet. To help you diversify your portfolio, StockBasket has expert-curated baskets of stocks or mini portfolios that can help you to invest in top blue chip companies in the right weightage.
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Infosys mainly operates in software development, maintenance, and independent validation services to companies in finance, insurance etc. TCS operates in consulting-led, cognitive-powered, integrated portfolio of business, technology, and engineering services and solutions. As on 29 sept 2022, the share price of Nestle India was trading at 18,938 INR. As on Sept 2022 the Market cap of HUL was $78.60 Billion, wchich makes makes HUL the world’s 149th most valuable company by market cap. In private sector Reliance Ind is the highest tax payer company in India.
Infosys Ltd. – Infosys is a global leader in next-generation digital services and consulting. They serve clients across 46 countries to navigate their digital transformation. IT Solutions and Services, Consulting, Business Process Outsourcing, Products and Platforms, Engineering Services, Cloud Services, Artificial Intelligence, Digital, Big Data are the core services provided by them.
They may not be among the set of buzzing stocks all the time, however; over the long term, blue-chip stocks tend to make money for the shareholders. Therefore, these are a great investment for people who can hold on through thick and thin, and through market cycles. Asian Paints enjoys a dominant share of over 50% in the organized domestic paints market.
The Client shall be wholly responsible for all his investment decisions and instruction. Your first installment will be deducted from ledger & subsequent from the bank. China’s blue-chip stocks hit four-month low as Fed rate hike loomsThe CSI 300 Index ended down 0.7%, hitting the lowest level since May 9, while the Shanghai Composite Index edged down 0.2%. The Hang Sang Index fell 1.8%, and the Hang Seng China Enterprises Index declined 2.2%.
Can u pls, give some info about blue chips fund operated by Banks eg, Chips basket fund of Yes bank,, Axis blue chip fund wherein fund manager invest our funds in the blue chips companies and charge their annual fees. HDFC Bank is India’s leading banking and financial service company. It is India’s largest private sector lender by assets and has a market cap of 776,526 crores. But most of these blue chip companies have already reached a saturation point. They can not continue to grow at the same pace and hence can’t give similar returns as they used to give in the past.
For example Coal India is known to give very good dividend to their shareholder. Generally these companies are either deft free, or keep partial debt to save some taxes. As on 29 sept 2022, the share of Bajaj Auto was trading around 3487 INR.
Is Tata Motors blue chip?
Many blue chip companies in India like Tata, Reliance, Infosys etc are considered as 'Too-big-to-fail' companies as they have survived and remained profitable for a very long time.
The company is also foraying into newfound and developing technologies such as cloud-based computing, machine learning, AI and Blockchain-based technology. TCS’ major revenue generation is from North America contributing to about 52.2%, UK around 31.9% while India is the least at 5.1%.Other markets contributed 10.8% of the portfolio. If you have tried a game of poker, you would know that the blue chips represent the highest dollar value in the game as compared to the white and red poker chips. Oliver Gingold, an employee of Dow Jones, gave businesses the phrase ‘Blue Chip’ in 1923.
For Indian businesses, the market standard is S&P CNX Nifty – a well-diversified 50 stocks index of companies from 14 sectors of the economy. Blue chip stocks are high-priced market stocks that are highly respected in the stock market because of their stable financial position and credibility. These companies pay attractive dividends and are highly sought-after by many. Investors would jump at the first chance they get to invest in blue chip companies. The reason why there’s a fight among investors for investing in blue chip company stocks is the fact that these stocks offer a reasonable amount of stability. – The only downside of investing in blue-chip company shares is that they are way more expensive than all available options.